-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WOAOtUC59zEj4q6SDSvq3Ov+qFwnXGLFATCabWb9rTya+jUEXNCC9GTAVo8jYZie G5Q2hzBVR9RnrOmW5eKNsA== 0000073088-10-000035.txt : 20100423 0000073088-10-000035.hdr.sgml : 20100423 20100423094621 ACCESSION NUMBER: 0000073088-10-000035 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20100423 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Submission of Matters to a Vote of Security Holders ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20100423 DATE AS OF CHANGE: 20100423 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTHWESTERN CORP CENTRAL INDEX KEY: 0000073088 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 460172280 STATE OF INCORPORATION: DE FISCAL YEAR END: 1206 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10499 FILM NUMBER: 10765982 BUSINESS ADDRESS: STREET 1: 125 S DAKOTA AVENUE STREET 2: SUITE 1100 CITY: SIOUX STATE: SD ZIP: 57104 BUSINESS PHONE: 6059782908 MAIL ADDRESS: STREET 1: 125 S DAKOTA AVENUE STREET 2: SUITE 1100 CITY: SIOUX STATE: SD ZIP: 57104 FORMER COMPANY: FORMER CONFORMED NAME: NORTHWESTERN PUBLIC SERVICE CO DATE OF NAME CHANGE: 19920703 8-K 1 ek_042210-earnings.htm 8-K_04/22/10 EARNINGS RELEASE ek_042210-earnings.htm
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549



FORM 8-K


CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report (Date of earliest event reported):  April 22, 2010


NorthWestern Corporation
(Exact name of registrant as specified in its charter)


Delaware
(State or other jurisdiction of incorporation)
 
1-10499
(Commission File Number)
46-0172280
(IRS Employer Identification No.)
3010 W. 69th Street
Sioux Falls, South Dakota
(Address of principal executive offices)
  
57108
(Zip Code)
 
(605) 978-2900
(Registrant’s telephone number, including area code)
  


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 
 

Item 2.02          Results of Operations and Financial Condition.
 
 
On April 23, 2010, NorthWestern Corporation d/b/a NorthWestern Energy (NYSE: NWE) (the “Company”) issued a press release (the “Press Release”) discussing financial results for the three months ended March 31, 2010, and reaffirmed earnings guidance for 2009 in the range of $1.95 - $2.10 per fully diluted share.  The Press Release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.

The information in this Current Report on Form 8-K provided under Item 2.02 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information provided under Item 2.02 in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.


Item 5.07         Submission of Matters to a Vote of Security Holders
 
On April 22, 2010, NorthWestern Corporation d/b/a NorthWestern Energy (NYSE: NWE) (the “Company”) held its Annual Meeting of Stockholders (the “Annual Meeting”). At the Annual Meeting, 33,948,622 shares of common stock, par value $.01, or approximately 94.28% of the 36,006,005 shares of common stock outstanding and entitled to vote at the Annual Meeting, were present in person or by proxies. Set forth below are the matters acted upon by Company stockholders at the Annual Meeting, and the final voting results on each such matter.
 
1. Election of Directors. Eight persons were nominated by the Board of Directors for election as directors of the Company, each to hold office for a one year term expiring at the 2011 annual meeting of stockholders and until his or her successor is duly elected and qualified. Each nominee was an incumbent director, no other person was nominated, and each nominee was elected. The votes cast for or withheld with respect to each nominee were as follows:

   
Shares of Common
  
Shares of Common
Name of Director
  
Stock Voted For
  
Stock Voted Withheld
         
Stephen P. Adik
  
           31,832,335
  
                    107,649
Dorothy M. Bradley
  
           31,869,850
  
                      70,134
E. Linn Draper Jr.
  
           30,344,311
  
                 1,595,673
Dana J. Dykhouse
  
           31,869,828
  
                      70,156
Julia L. Johnson
  
           31,582,329
  
                    357,655
Philip L. Maslowe
  
           31,796,715
  
                    143,269
Denton Louis Peoples
  
           31,833,053
  
                    106,931
Robert C. Rowe
  
           31,872,566
  
                      67,418


2. Ratification of Independent Registered Public Accounting Firm. A resolution that the stockholders ratify the action of the Audit Committee in selecting and appointing Deloitte & Touche LLP as the independent registered public accounting firm for the Company for the year ending December 31, 2010 was submitted to, and voted upon by, the stockholders. There were 33,603,662 shares of common stock voted in favor of, and 330,879 shares of common stock voted against, said resolution. The holders of 14,081 shares of common stock abstained and there were no broker non-votes. The resolution, having received the affirmative vote of the holders of at least a majority of the shares of common stock represented by proxy or in person at the Annual Meeting, was adopted.


Item 9.01          Financial Statements and Exhibits.

EXHIBIT NO.
DESCRIPTION OF DOCUMENT
99.1*
Press Release dated April 23, 2010

* filed herewith

 
 
 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


   
NORTHWESTERN CORPORATION
  
       
 
By:
/s/ Timothy P. Olson
  
   
Timothy P. Olson
  
   
Interim General Counsel & Corporate Secretary
  


Date: April 23, 2010







 
 
 

Index to Exhibits

EXHIBIT NO.
DESCRIPTION OF DOCUMENT
99.1*
Press Release dated April 23, 2010

* filed herewith

 
 
 

EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1 exhibit_99-1.htm

   
  
NorthWestern Corporation
d/b/a NorthWestern Energy
3010 W. 69th Street
Sioux Falls, SD  57108
www.northwesternenergy.com
 
NYSE: NWE
 
News Release
FOR IMMEDIATE RELEASE
 
 
Media Contact:
Claudia Rapkoch
(866) 622-8081
claudia.rapkoch@northwestern.com
 
Investor Relations Contact:
Dan Rausch
(605) 978-2902
daniel.rausch@northwestern.com
 

NORTHWESTERN REPORTS FIRST QUARTER 2010 RESULTS


Reports diluted EPS of $.79/share in 1Q 2010 compared to $.63/share in 1Q 2009
Reaffirms guidance for 2010 of $1.95 - $2.10 per fully diluted share
Declares a dividend of 34 cents per share


SIOUX FALLS, S.D. – Apr. 23, 2010 – NorthWestern Corporation d/b/a NorthWestern Energy (NYSE: NWE) reported financial results for the quarter ended March 31, 2010.

Highlights for the quarter include:
 
·  
Net income improved by $5.9 million or 25.9% over the first quarter of 2009 due primarily to:
 
o  
A decrease in operating, general and administrative expenses of $7.1 million, before tax;
 
o  
A $3.4 million reduction in income tax expense due to obtaining, in the third quarter of 2009, Internal Revenue Service (IRS) approval of a tax accounting method change to deduct repairs that would have previously been capitalized;
 
o  
Offset by a pre-tax gross margin decrease of approximately $1.6 million due primarily to decreased natural gas volumes from milder winter weather in Montana and decreased electric volumes from lower industrial demand relating to the weak economic climate;
 
 
·  
Cash provided by operating activities totaled $106.3 million for the three months ended March 31, 2010 as compared with $65.1 million during the three months ended March 31, 2009 due to lower contributions to our qualified pension plans in 2010, which were substantially funded at December 31, 2009.
 
First Quarter Financial Results

Consolidated net income was $28.7 million or $.79 per diluted share for the quarter ended March 31, 2010, compared with consolidated net income of $22.8 million or $.63 per diluted share for the quarter ended March 31, 2009.  Computed diluted shares were 36.5 million at March 31, 2010 compared with 36.3 million diluted shares at March 31, 2009.

“We are pleased with our increase in net income and operating cash flows when compared with the first quarter of 2009.  Our ability to manage costs drove the strong financial results, offsetting the continued soft regional economy and mild weather in Montana for the quarter,” said Bob Rowe, President and CEO.  “We continue to move ahead with the construction of the Mill Creek Generation Station, are advancing other efforts valuable to our customers, and are making progress on the renewable transmission projects to facilitate sound development of our region’s green energy resources.”
 

 
 
NorthWestern Reports First Quarter 2010 Financial Results
April 23, 2010
Page 2
 
 
The following table reconciles the primary changes in 2010 results from 2009:
               
Fully
 
($millions, except EPS)
  
Pre-tax
  
Net Income 1
 Diluted EPS
                 
   
Q1 2009 reported
  
 $          35.9
  
 $          22.8
  
 $         0.63
                 
 
Deduct
Natural gas - warmer winter weather
  
             (2.0)
  
              (1.2)
  
          (0.03)
 
Deduct
Interest expense
  
             (1.9)
  
              (1.2)
  
          (0.03)
 
Deduct
Electric - retail volumes
  
             (1.4)
  
              (0.9)
  
          (0.02)
 
Deduct
Electric - transmission capacity
  
             (0.4)
  
              (0.2)
  
          (0.01)
 
Deduct
Depreciation expense
  
             (0.2)
  
              (0.1)
  
          (0.00)
                 
 
Add
Other income
  
               0.2
  
               0.1
  
            0.00
 
Add
Postretirement health care
  
               0.5
  
               0.3
  
            0.01
 
Add
Electric - reclamation settlement
  
               0.5
  
               0.3
  
            0.01
 
Add
Natural gas - commerical contract minimum usage requirement
  
               0.6
  
               0.4
  
            0.01
 
Add
Pension
  
               0.6
  
               0.4
  
            0.01
 
Add
Property and other taxes
  
               1.3
  
               0.8
  
            0.02
 
Add
Compensation
  
               2.2
  
               1.4
  
            0.04
 
Add
Insurance reserves
  
               3.0
  
               1.8
  
            0.05
 
Add
Benefit of repairs tax deduction
  
                  -
  
               3.4
  
            0.09
 
Add
All other, net
  
               1.9
  
               0.6
  
            0.02
                 
   
Subtotal
          
            0.16
                 
   
Q1 2010 reported
  
 $          40.9
  
 $          28.7
  
 $         0.79
                 
1.) Income Tax Benefit (Expense) calculation on reconciling items assumes normal effective tax rate of 38.5%.
 
For more information see www.northwesternenergy.com/documents/investor/Q110.pdf

Consolidated gross margin was $161.3 million for the three months ended March 31, 2010, a decrease of $1.6 million, or 1.0%, from gross margin in 2009.  This decline was primarily due to a decrease in electric volumes from lower industrial demand relating to the weak economic climate, lower gas volumes from warmer winter weather in Montana and a decline in transmission revenues.  These decreases were offset in part by recognition of revenues associated with a natural gas contract with minimum usage requirements that were not met and a settlement to recover previously incurred reclamation costs associated with the coal supply at Colstrip Unit 4.

Consolidated operating, general and administrative expenses were $58.3 million for the three months ended March 31, 2010, as compared with $65.4 million for the three months ended March 31, 2009.  Primary components of this change include the following:
 
·  
Lower insurance reserves due to claims incurred in the prior year and a favorable arbitration decision received in the first quarter of 2010;
 

 
 
NorthWestern Reports First Quarter 2010 Financial Results
April 23, 2010
Page 3
 
·  
Decreased compensation and benefit costs primarily from a combination of lower headcount, more time spent by employees on capital projects rather than maintenance projects (which are expensed), lower severance costs, lower pension expense and lower postretirement health care costs due to an amendment to the plan in 2009.
 
Property and other taxes were $23.0 million for the three months ended March 31, 2010 as compared with $24.3 million in the first quarter of 2009.  This decrease was due to lower estimated property valuations.

Depreciation expense was $22.9 million for the three months ended March 31, 2010 as compared with $22.7 million in the first quarter of 2009.

Interest expense for the three months ended March 31, 2010 was $17.1 million, an increase of $2.0 million from the first quarter of 2009.  This increase was primarily due to increased debt outstanding, offset in part by $0.7 million capitalized for the debt portion of allowance for funds used during construction (AFUDC), primarily related to the Mill Creek Generating Station.

Income tax expense for the three months ended March 31, 2010 was $12.2 million as compared with $13.1 million in the first quarter of 2009.  The effective tax rate in 2010 was 29.8% as compared with 36.4% for the same period of 2009, and the Company expects our effective tax rate for 2010 to be approximately 30%.

Results from Operations

Electric gross margin for the quarter ended March 31, 2010 was $112.8 million, down 0.4%, compared with $113.2 million for the same period of 2009.  This decline in margin and volumes are due largely to decreases in industrial demand relating to the weak economic climate, and to a lesser degree, decreases in transmission capacity demand.  These decreases were offset in part by: (i) higher revenues for operating, general and administrative expenses primarily related to customer efficiency programs, which are recovered from customers through the supply trackers and therefore have no impact on operating income; and (ii) decreased cost of sales due to a settlement to recover previously incurred reclamation costs associated with the coal supply at Colstrip Unit 4.

Retail electric volumes for the quarter ended March 31, 2010 totaled 2,582,000 megawatt hours compared with 2,663,000 megawatt hours for the quarter ended 2009, a 3.0% decrease.  This decline in volume is due largely to decreases in industrial demand relating to the weak economic climate.  Wholesale electric volumes were 243,000 megawatt hours for the quarter ended March 31, 2010 and flat compared with the first quarter of 2009.

Natural gas gross margin was $48.2 million for the quarter ended March 31, 2010 compared with $49.9 million during the first quarter of 2009.  Retail natural gas volumes were 13,685,000 dekatherms for the quarter ended March 31, 2010 compared with 13,870,000 dekatherms for the same period in 2009.  The decline in gross margin is primarily due to warmer winter weather in Montana and a reduction in operating, general and administrative expenses recovered from customers through the supply tracker related to customer efficiency programs, offset in part by recognition of revenues associated with a contract with minimum usage requirements that were not met.

Liquidity and Capital Resources
 

 
 
NorthWestern Reports First Quarter 2010 Financial Results
April 23, 2010
Page 4
 

As of March 31, 2010, cash and cash equivalents were $7.1 million compared with $4.3 million at Dec. 31, 2009.  The Company had $208.4 million available from credit facilities at March 31, 2010 compared with $180.9 million at Dec. 31, 2009.  The increase in credit revolver availability was due primarily to cash provided by operating activities of the Company during the quarter ended March 31, 2010.

Cash provided by operating activities totaled $106.3 million for the three months ended March 31, 2010, as compared with $65.1 million during the three months ended March 31, 2009. This increase in operating cash flows is primarily related to contributions of $43.2 million to our qualified pension plans during the first quarter of 2009.

Cash used in investing activities increased by approximately $39.6 million as compared with the first quarter of 2009 due primarily to increased property, plant and equipment additions related to the Mill Creek Generating Station project.

Cash used in financing activities totaled approximately $45.7 million in the first quarter of 2010 as compared with cash provided by financing activities of approximately $25.0 million during the three months ended March 31, 2009.  During the first quarter of 2010 the Company made debt repayments of $33.4 million and paid dividends on common stock of $12.2 million.  During the first quarter of 2009 the Company issued debt of $250.0 million, made debt repayments of $211.3 million, and paid dividends on common stock of $12.0 million.

Dividend

NorthWestern’s Board of Directors declared a quarterly common stock dividend of 34 cents per share, payable on June 30, 2010, to common shareholders of record as of June 15, 2010.

Rate Case Update

In October 2009, the Company filed a request with the Montana Public Service Commission (MPSC) for an annual electric transmission and distribution revenue increase of $15.5 million, and an annual natural gas transmission, storage and distribution revenue increase of $2.0 million.  The request was based on a 2008 test period, a return on equity of 10.9%, an equity ratio of 49.45% and rate base of $632.2 million and $256.6 million for electric and natural gas, respectively.

The procedural schedule for this rate case was temporarily suspended pending resolution of confidential treatment of various data requests, which was resolved in April 2010.  The Company expects the procedural schedule to be reinstated during the second quarter of 2010 and the MPSC to issue a final order during the fourth quarter of 2010.  The Company requested interim rate adjustments, which we expect to be considered after intervener testimony is filed.


2010 Earnings Outlook

NorthWestern reaffirms its earnings for 2010 to be $1.95 - $2.10/fully diluted share.

The major assumptions include, but are not limited to, the following expectations:

·  
A consolidated income tax rate of approximately 30% of pre-tax income;
 

 
 
NorthWestern Reports First Quarter 2010 Financial Results
April 23, 2010
Page 5
 
·  
No impact from requested rate increase in Montana due to anticipated final order in the rate case during the fourth quarter of 2010;
·  
Fully diluted average shares outstanding of 36.5 million; and
·  
Normal weather in the Company’s electric and natural gas service territories for the remainder of 2010

Results of Annual Stockholder Meeting

NorthWestern’s stockholders elected E. Linn Draper, Jr., Stephen P. Adik, Dorothy M. Bradley, Dana J. Dykhouse, Julia L. Johnson, Philip L. Maslowe, D. Louis Peoples and Robert C. Rowe to a one-year term on the Board. 
 
Stockholders also ratified Deloitte & Touche, LLP as the company’s independent registered public accounting firm for the year ending December 31, 2010.

Company Hosting Investor Conference Call

NorthWestern will host an investor conference call today, Friday, April 23 at 11:00 am Eastern Time to review its financial results for the quarter ended March 31, 2010.

The conference call will be webcast live on the Internet at http://www.northwesternenergy.com under the “Investor Information” heading.  To listen, please go to the site at least 10 minutes in advance of the call to register.  An archived webcast will be available shortly after the call.
 
 
A telephonic replay of the call will be available beginning at noon today through May 23, 2010, at 800-475-6701, access code 152578.

About NorthWestern Energy

NorthWestern Energy is one of the largest providers of electricity and natural gas in the Upper Midwest and Northwest, serving approximately 661,000 customers in Montana, South Dakota and Nebraska.  More information on NorthWestern Energy is available on the Company's Web site at www.northwesternenergy.com.


SPECIAL NOTE REGARDING FORWARD—LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, the information under “2010 Earnings Outlook”.  Forward-looking statements often address our expected future business and financial performance, and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” or “will.”  These statements are based upon our current expectations and speak only as of the date hereof.  Our actual future business and financial performance may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and un certainties, including, but not limited to:

 
•
potential adverse federal, state, or local legislation or regulation or adverse determinations by regulators could have a material adverse effect on our liquidity, results of operations and financial condition;

 
•
changes in availability of trade credit, usage, commodity prices, fuel supply costs or availability due to higher demand, shortages, weather conditions, transportation problems or other developments, may reduce revenues or may increase operating costs, each of which would adversely affect our liquidity;
 

 
 
NorthWestern Reports First Quarter 2010 Financial Results
April 23, 2010
Page 6
 

 
•
unscheduled generation outages or forced reductions in output, maintenance or repairs, which may reduce revenues and increase operating costs or may require additional capital expenditures or other increased operating costs; and

 
•
adverse changes in general economic and competitive conditions in the U.S. financial markets and in our service territories.


Our Annual Report on Form 10-K, recent and forthcoming Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K and other Securities and Exchange Commission filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. 

We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

# # #







 






 

 
 
NorthWestern Reports First Quarter 2010 Financial Results
April 23, 2010
Page 7
 
NORTHWESTERN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(in thousands)
 

     
March 31,
2010
    
December 31, 2009
  
     
(unaudited)
        
ASSETS
              
Current Assets
  
$
252,423
  
$
264,827
  
Property, Plant, and Equipment, Net
    
1,996,483
    
1,964,121
  
Goodwill
    
355,128
    
355,128
  
Regulatory Assets
    
180,300
    
182,382
  
Other Noncurrent Assets
    
30,303
    
28,674
  
Total Assets
  
$
2,814,637
  
$
2,795,132
  
LIABILITIES AND SHAREHOLDERS’ EQUITY
              
Current Maturities of Long-term Debt and Capital Leases
  
$
7,571
  
$
7,320
  
Current Liabilities
    
295,902
    
287,672
  
Long-term Capital Leases
    
35,261
    
35,570
  
Long-term Debt
    
947,691
    
981,296
  
Noncurrent Regulatory Liabilities
    
242,178
    
238,332
  
Deferred Income Taxes
    
181,284
    
161,188
  
Other Noncurrent Liabilities
    
300,957
    
296,730
  
Total Liabilities
    
2,010,844
    
2,008,108
  
Total Shareholders’ Equity
    
803,793
    
787,024
  
Total Liabilities and Shareholders’ Equity
  
$
2,814,637
  
$
2,795,132
  
 

 
 
NorthWestern Reports First Quarter 2010 Financial Results
April 23, 2010
Page 8
 
NORTHWESTERN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share amounts)



   
Three Months Ended March 31,
  
   
2010
  
2009
  
Revenues
              
   Electric
  
$
203,839
  
$
207,987
  
   Natural Gas
  
130,019
  
158,803
  
   Other
  
315
  
4,113
  
     Total Revenues
  
334,173
  
370,903
  
Operating Expenses
          
   Cost of sales
  
172,827
  
208,010
  
   Operating, general and administrative
  
58,308
  
65,419
  
   Property and other taxes
  
22,968
  
24,289
  
   Depreciation
  
22,875
  
22,722
  
     Total Operating Expenses
  
276,978
  
320,440
  
Operating Income
  
57,195
  
50,463
  
Interest Expense
  
(17,050
)
(15,134
)
Other Income
  
753
  
591
  
Income Before Income Taxes
  
40,898
  
35,920
  
Income Tax Expense
  
(12,180
)
(13,107
)
Net Income
  
$
28,718
  
$
22,813
  
 
Average Common Shares Outstanding
  
36,169
  
35,934
  
Basic Earnings per Average Common Share
  
$
0.79
  
$
0.63
  
Diluted Earnings per Average Common Share
  
$
0.79
  
$
0.63
  
Dividends Declared per Average Common Share
  
$
0.34
  
$
0.335
  
 

 
 
NorthWestern Reports First Quarter 2010 Financial Results
April 23, 2010
Page 9
 
NORTHWESTERN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)


   
Three Months Ended March 31,
  
   
2010
  
2009
  
Operating Activities
          
Net income
  
$
28,718
  
$
22,813
  
Non-cash items
  
39,897
  
37,447
  
Changes in operating assets and liabilities
  
37,655
  
4,870
  
Cash Provided by Operating Activities
  
106,270
  
65,130
  
           
Cash Used in Investing Activities
  
(57,796
)
(18,189
)
           
Cash (Used In) Provided by Financing Activities
  
(45,690
)
25,013
  
           
Net Increase in Cash and Cash Equivalents
  
$
2,784
  
$
71,954
  
Cash and Cash Equivalents, beginning of period
  
$
4,344
  
$
11,292
  
Cash and Cash Equivalents, end of period
  
$
7,128
  
$
83,246
  

 

 
 
NorthWestern Reports First Quarter 2010 Financial Results
April 23, 2010
Page 10
 
NORTHWESTERN CORPORATION
ELECTRIC SEGMENT
 
Three Months Ended March 31, 2010
 
(Unaudited)
 

   
Results
  
   
2010
  
2009
  
Change
  
% Change
  
   
(in millions)
  
Retail revenue
  
$
170.4
  
$
180.5
  
$
(10.1
)
(5.6
)%
Transmission
  
11.5
  
11.9
  
(0.4
)
(3.4
)
Wholesale
  
11.0
  
11.1
  
(0.1
)
(0.9
)
Regulatory amortization and other
  
10.9
  
4.5
  
6.4
  
142.2
  
Total Revenues
  
203.8
  
208.0
  
(4.2
)
(2.0
)
Total Cost of Sales
  
91.0
  
94.8
  
(3.8
)
(4.0
)
Gross Margin
  
$
112.8
  
$
113.2
  
$
(0.4
)
(0.4
)%


   
Revenues
  
Megawatt Hours (MWH)
  
Avg. Customer Counts
  
   
2010
      2009  
2010
  
2009
  
2010
  
2009
  
   
(in thousands)
          
Retail Electric
                          
      Montana
  
$
63,596
  
$
66,094
  
680
  
679
  
270,923
  
269,003
  
      South Dakota
  
12,845
  
13,547
  
176
  
171
  
48,422
  
48,194
  
   Residential 
  
76,441
  
79,641
  
856
  
850
  
319,345
  
317,197
  
      Montana
  
66,218
  
68,892
  
788
  
796
  
60,799
  
60,202
  
      South Dakota
  
15,808
  
16,673
  
238
  
228
  
11,622
  
11,475
  
   Commercial
  
82,026
  
85,565
  
1,026
  
1,024
  
72,421
  
71,677
  
      Industrial
  
7,767
  
10,947
  
676
  
765
  
71
  
72
  
      Other
  
4,205
  
4,311
  
24
  
24
  
4,623
  
4,643
  
Total Retail Electric
  
$
170,439
  
$
180,464
  
2,582
  
2,663
  
396,460
  
393,589
  
Wholesale Electric
                          
      Montana
  
$
9,934
   $  9,823  
204
  
204
  
N/A
  
N/A
  
      South Dakota
  
1,078
  
1,308
  
39
  
39
  
N/A
  
N/A
  
Total Wholesale Electric
  
$
11,012
   $  11,131  
243
  
243
  
N/A
  
N/A
  





 
 
NorthWestern Reports First Quarter 2010 Financial Results
April 23, 2010
Page 11
 
NORTHWESTERN CORPORATION
NATURAL GAS SEGMENT
 
Three Months Ended March 31, 2010
 
(Unaudited)
 
   
Results
  
   
2010
  
2009
  
Change
  
% Change
  
   
(in millions)
  
Retail revenue
  
$
118.4
   $  144.4   $   (26.0
)
(18.0
)%
Wholesale and other
  
11.6
  
14.4
  
(2.8
)
(19.4
)
Total Revenues
  
130.0
  
158.8
  
(28.8
)
(18.1
)
Total Cost of Sales
  
81.8
  
108.9
  
(27.1
)
(24.9
)
Gross Margin
  
$
48.2
  
$
49.9
  
$
(1.7
)
(3.4
)%

 

 
   
Revenues
  
Dekatherms (Dkt)
  
Customer Counts
  
   
2010
  
2009
  
2010
  
2009
  
2010
  
2009
  
   
(in thousands)
                  
Retail Gas
                          
      Montana
  
$
44,620
  
$
55,524
  
4,954
  
5,383
  
158,294
  
157,395
  
      South Dakota
  
14,551
  
18,690
  
1,567
  
1,577
  
37,574
  
37,105
  
      Nebraska
  
12,833
  
15,443
  
1,448
  
1,316
  
36,875
  
36,813
  
   Residential
  
72,004
  
89,657
  
7,969
  
8,276
  
232,743
  
231,313
  
      Montana
  
22,413
  
28,271
  
2,484
  
2,735
  
22,090
  
22,046
  
      South Dakota
  
13,268
  
14,296
  
1,732
  
1,497
  
5,962
  
5,887
  
      Nebraska
  
9,506
  
10,942
  
1,355
  
1,231
  
4,606
  
4,582
  
   Commercial
  
45,187
  
53,509
  
5,571
  
5,463
  
32,658
  
32,515
  
      Industrial
  
826
  
803
  
94
  
79
  
292
  
299
  
      Other
  
390
  
476
  
51
  
52
  
146
  
142
  
Total Retail Gas
  
$
118,407
  
$
144,445
  
13,685
  
13,870
  
265,839
  
264,269
  

 

 


 
 
NorthWestern Reports First Quarter 2010 Financial Results
April 23, 2010
Page 12
 
NORTHWESTERN CORPORATION
 
SEGMENT RESULTS
 
(Unaudited)
(in thousands)


Three Months Ended
                  
March 31, 2010
  
Electric
  
Gas
  
Other
  
Eliminations
  
Total
  
Operating revenues
  
$
203,839
  
$
130,019
  
$
315
  
$
—
  
$
334,173
  
Cost of sales
  
91,065
  
81,762
  
—
  
—
  
172,827
  
Gross margin
  
112,774
  
48,257
  
315
  
—
  
161,346
  
Operating, general and administrative
  
40,016
  
17,893
  
399
  
—
  
58,308
  
Property and other taxes
  
16,773
  
6,154
  
41
  
—
  
22,968
  
Depreciation
  
18,504
  
4,363
  
8
  
—
  
22,875
  
Operating income (loss)
  
37,481
  
19,847
  
(133
)
—
  
57,195
  
Interest expense
  
(13,193
)
(3,145
)
(712
)
—
  
(17,050
)
Other income
  
457
  
269
  
27
  
—
  
753
  
Income tax (expense) benefit
  
(6,534
)
(5,739
)
93
  
—
  
(12,180
)
Net income (loss)
  
$
18,211
  
$
11,232
  
$
(725
)
$
—
  
$
28,718
  

 

 
Three Months Ended
                  
March 31, 2009
  
Electric
  
Gas
  
Other
  
Eliminations
  
Total
  
Operating revenues
  
$
207,987
  
$
158,803
  
$
4,651
  
$
(538
)
$
370,903
  
Cost of sales
  
94,748
  
108,938
  
4,324
  
—
  
208,010
  
Gross margin
  
113,239
  
49,865
  
327
  
(538
)
162,893
  
Operating, general and administrative
  
42,979
  
21,815
  
1,163
  
(538
)
65,419
  
Property and other taxes
  
18,017
  
6,227
  
45
  
—
  
24,289
  
Depreciation
  
18,391
  
4,323
  
8
  
—
  
22,722
  
Operating income (loss)
  
33,852
  
17,500
  
(889
)
—
  
50,463
  
Interest expense
  
(11,150
)
(3,068
)
(916
)
—
  
(15,134
)
Other income
  
291
  
268
  
32
  
—
  
591
  
Income tax (expense) benefit
  
(8,067
)
(5,475
)
435
  
—
  
(13,107
)
Net income (loss)
  
$
14,926
  
$
9,225
  
$
(1,338
 )
$
—
    
22,813
  
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